US: NYDFS regulator unveils updates on Bitcoin regulation

Wednesday 24 December 2014 10:18 CET | News

Benjamin Lawsky, New York Department of Financial Services (NYDFS) regulator, revealed an updated set of proposed rules on cryptocurrencies for stricter cybersecurity requirements.

Lawsky has argued that the new rules are meant to better protect consumers and the financial markets from cybernetic attacks, reports.

Under the proposal, financial firms handling Bitcoins would need to obtain a “BitLicense” from the NYDFS, ensure a strong cyber defense and maintain detailed records of all cryptocurrency transactions. The recently released NYDFS draft rule on Bitcoin raised tech companies and digital advocacy groups’ eyebrows, arguing they would dampen innovation and damage privacy.

Lawsky also clarified that software developers and individuals using Bitcoin will not be required to get a license, as well as companies managing customer rewards programs or gift cards. The same case applies for both merchants who accept virtual currencies as payment for goods and services and customers buying products with the virtual currency.

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Keywords: US, NYDFS, regulator, update, draft rule, proposal, merchant, financial companies, BitLicense, cryptocurrency, Bitcoin
Categories: DeFi & Crypto & Web3
Countries: World
This article is part of category

DeFi & Crypto & Web3